Chevron Corporation subsidiary Chevron Shipping Company has signed an agreement with Sembcorp Marine Repairs and Upgrades, a wholly owned subsidiary of Sembcorp Marine, intending to reduce the carbon intensity of Chevron’s LNG fleet operations.
Under the agreement, with Sembcorp Marineand Chevron will install new technologies aboard Chevron vessels to support their energy transition goals. The changes are in alignment with IMO decarbonisation targets. Chevron aims to lower the carbon footprint of LNG transportation by installing new technologies such as a reliquefication system, hull air lubrication, and a new gas compressor. Together, these changes are expected to reduce cargo boil-off, lower fuel consumption and increase volumes of cargo delivered.
Mark Ross, President Chevron Shipping, said: “We are excited to work with Sembcorp Marine to help us advance our lower carbon goals. We believe LNG will be a key component of the global energy transition for years to come, and Chevron is focused on continuing its disciplined capital investment in our LNG fleet.”
Sembcorp Marine has significant expertise in complex LNG fleet modifications and has a proven track record for lower carbon solutions for the maritime industry. Sembcorp Marine will provide Chevron with engineering, procurement, installation, and commissioning (EPIC) services and expects to complete the work by mid-2025.
Wong Weng Sun, Sembcorp Marine President and CEO, said: “Sembcorp Marine is committed to advancing environmental sustainability through the development of industry-leading solutions. Working with Chevron on its LNG fleet upgrades is an immediate way to accelerate the lowering of the carbon footprint in the maritime industry, to achieve the IMO’s target to reduce emissions from international shipping by at least half by 2050, compared to the levels in 2008.”